Over 5,000 Cargoes Trapped at Nigerian Ports Amid N2 Trillion Demurrage Losses

Nigeria's seaports are facing a major crisis as more than 5,000 cargoes are currently trapped, leading to an estimated N2 trillion in demurrage losses for port users. The disruption, which has been ongoing for the past two weeks, is primarily caused by persistent network glitches on the Nigeria Customs Service (NCS) B'Odogwu digital platform.

The technical issues on the B'Odogwu platform have paralyzed crucial clearing processes, including the registration of Form M, generation of Pre-Arrival Assessment Report (PAAR), duty payments, and the final exit clearance of goods. This has brought cargo movement at major ports like Onne, Tin Can Island, and Apapa, as well as various bonded terminals, to a near standstill. The inability to process payments and documentation has created a massive bottleneck, impacting the flow of international trade.

The economic fallout is severe and far-reaching. Businesses, particularly manufacturers, are struggling to get their raw materials, which could force them to scale down or even shut down production. This not only impacts their operations but also threatens jobs and supply chains across the country. The government is also losing out on significant revenue, with the Apapa Port alone, which typically generates over N1 billion daily, experiencing a major shortfall in earnings.

Importers, manufacturers, and clearing agents are now desperately calling on the government to intervene. They are urging for an immediate fix to the B'Odogwu platform, with some suggesting that the previous system should be run concurrently as a backup to prevent a complete collapse of port operations. Stakeholders argue that the delays are not their fault and have called for incentives and demurrage waivers to alleviate their financial burden.

The Comptroller General of Customs, Bashir Adeniyi, has acknowledged the platform's downtime, attributing the issues to attempted hacks. While the NCS claims the problems have been largely addressed, port users continue to report significant difficulties. The situation highlights the urgent need for a more robust and reliable digital infrastructure to support Nigeria's critical import and export activities.

A lack of efficiency and automation has long plagued Nigerian ports, with multiple government agencies operating on-site and contributing to procedural delays. The current crisis underscores the vulnerability of the system and the dire need for comprehensive reforms. The reliance on manual inspections and the absence of modern scanners further complicate the clearance process, making it susceptible to the kind of gridlock currently being experienced.

Industry experts have suggested that for Nigeria to solve this recurring problem, it must invest in modern port infrastructure, including sophisticated scanners to expedite cargo inspections. Furthermore, a cohesive and integrated digital system is essential to streamline documentation and payment processes, reducing human interference and minimizing opportunities for corruption.

This situation serves as a stark reminder of the fragile nature of Nigeria’s logistics and trade ecosystem. The failure of a single digital platform has not only led to colossal financial losses but has also jeopardized the operations of countless businesses and the livelihoods of many Nigerians. Without swift and decisive action, the nation's trade and economic recovery could be significantly hampered.

Emmanuel Oladele

Am Oladele Emmanuel Abiodun, a Public Speaker and News Writer

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